EUR/USD is going to face a new day dense
Investing.com – The day yesterday was very eventful for the Euro-Dollar as the pair reacted in two opposite direction to a current of dense, and at the end confirm a bearish view.
Note that yesterday morning, the european PMI indexes disappointing had affected the european currency. In the early afternoon, the meeting “dovish” ECB has led to new lows, on 1,1305, the central bank has displayed a clear concern about the risks that weigh on growth in Europe.
However, this prudent position had been widely anticipated, and after an initial reaction to the downside, the EUR/USD pair posted a strong rebound. It should be noted that this rebound was to also link to the words of the Secretary for Trade in the US has estimated that the US and China are very far from a trade agreement, which was to drop the Dollar.
Later in the late afternoon, the announcement by the German government of a severe downward revision of its growth forecasts 2019 had sent the Euro down, with a hollow 1,1288, Berlin anticipating a rise in GDP of 1% this year, compared with 1.8% in its previous forecast.
Of evidence therefore converge to confirm a slowdown of the growth economy in Europe, but also everywhere in the world, a theme that should continue to bridle the impulses upward temporary of the Euro, especially now that the market anticipates real consequences on the management of monetary policy, following the ECB meeting yesterday.
Today the program will remain dense for the EUR/USD, with many statistics that are likely to influence the trade. We will monitor in particular the IFO index of business climate in German, at 10 am, the durable goods orders US to 14h30, and new home sales US 16.
From a graphical point of view, the new low yesterday reinforcing the profile bearish of the EUR/USD, but a break under a threshold of 1.13 tested yesterday, seems to be necessary to be able to take a risk and capitalize on opportunities for sales assistants, in sight of the next support at 1,1270 and 1,1215, the low annual 2018.
The increase, 1,1335, 1,1350, 1,1380 and 1,14 are the first resistances to take into account on the EUR/USD pair in the case of a bounce, a scenario that is not excluded for this Friday, with any profits being taken that could stimulate a rebound, in the face of the balance sheet, weekly bearish.
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